Calculate the price of a $1,000 face value bond that offers a $45 annual coupon, and has six years to maturity, when the interest rate is 6.0% (0.060).
What will be an ideal response?
Using a financial calculator the price of the bond is $926.24. We insert $1,000 for the face (future) value; $45 for the annual payment, 6.0 for the annual interest rate, 6 for the N (or years) and solve for P (or PV on most calculators).
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In 2015, U.S. net exports were
a. positive and about 3 percent the size of GDP. b. positive and about 6 percent the size of GDP. c. negative and about 3 percent the size of GDP. d. negative and about 6 percent the size of GDP.
In a small closed economy investment is $50 billion and private saving is $45 billion. What are public saving and national saving?
a. $5 billion and $45 billion b. -$5 billion and $45 billion c. $5 billion and $50 billion d. -$5 billion and $50 billion
If variable X goes down as a result of variable Y going down, then X and Y are
A) directly related. B) negatively related. C) inversely related. D) independent.
A balance-of-payments surplus can be reduced with
A. Increased tariffs and quotas on foreign goods. B. Increased government spending. C. Increased taxes. D. Contractionary monetary policy.